The Collection Industry And Discount Agencies
3:23 AM
I have been working for Rapid Recovery Solution for 2 years now. RRS is a Collection Agency that does things unalike then other agencies I have worked for in the past. How do they do thing differently you ask?
Well most collection agencies will low ball their clients with rates or commissions that sound very low. Often its $10 an account or 10% to 15% commission. These companies are called discount agencies. To a person who has never used a collection agency this sounds great ! But how great is it really?
What are they earliest things that happen when a collection agency receives the debt? Most will send out a letter and have one of their collectors make a phone call. Sounds cheap and easy so far right?
Well what are these discount agencies paying their collectors? How much does it cost them to send a letter out? Well most collectors are making at least $10 an hour and to send out a good collection letter it can cost any where from 50 cents to over a dollar.
So If they charged you 10 dollars to take your debt. How much work do you think they are really going to do? Most companies will just make a phone call or two and maybe send out a letter. This is known as cherry picking.
While the system of Cherry picking maybe cost-effective to these discount Collection agencies, It does not give the you the client the results you are probably looking for!
If you want your debt collected properly, you will want to use a full service collection agency. A good one will usually charge a commission of around 38% of what they collect, by using a full service agency, you have an agency that will only be making money if they do their job properly and get your money back. The big difference is by charging a higher commission a full service agency can afford to do the extra work needed to get the job done right and still make a profit!
Well most collection agencies will low ball their clients with rates or commissions that sound very low. Often its $10 an account or 10% to 15% commission. These companies are called discount agencies. To a person who has never used a collection agency this sounds great ! But how great is it really?
What are they earliest things that happen when a collection agency receives the debt? Most will send out a letter and have one of their collectors make a phone call. Sounds cheap and easy so far right?
Well what are these discount agencies paying their collectors? How much does it cost them to send a letter out? Well most collectors are making at least $10 an hour and to send out a good collection letter it can cost any where from 50 cents to over a dollar.
So If they charged you 10 dollars to take your debt. How much work do you think they are really going to do? Most companies will just make a phone call or two and maybe send out a letter. This is known as cherry picking.
While the system of Cherry picking maybe cost-effective to these discount Collection agencies, It does not give the you the client the results you are probably looking for!
If you want your debt collected properly, you will want to use a full service collection agency. A good one will usually charge a commission of around 38% of what they collect, by using a full service agency, you have an agency that will only be making money if they do their job properly and get your money back. The big difference is by charging a higher commission a full service agency can afford to do the extra work needed to get the job done right and still make a profit!
About the Author:
LJ James provides debt collection services and is working with a reputable collections agency
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